BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Cost of goods sold (COGS) includes all of the costs and expenses directly related to the production of goods. COGS excludes indirect costs such as overhead and sales & marketing. COGS is deducted from revenues (sales) in order to calculate gross profit and gross margin. Higher COGS results in lower margins.

Detailed explanation-2: -Costs of Goods Sold (COGS) represent the expenses involved into producing your goods over a certain period of time. The COGS formula is: COGS = the starting inventory + purchases – ending inventory.

Detailed explanation-3: -Direct costs (also known as costs of goods sold-COGS) are the costs that can be completely attributed to the production of a specific product or service. These costs include the direct expenses for materials used to create the product, and potentially any labor costs that are exclusively used to create the product.

Detailed explanation-4: -Cost of goods sold is the total of all costs used to create a product or service, which has been sold. These costs fall into the general sub-categories of direct labor, materials, and overhead.